People are putting a little twist on the reality show “love it or list it.” Money.com’s Aly Yale is reporting that homeowners are listing homes for high prices just to see if anyone bites… (Yahoo Finance)
- FOMO is strong. Homeowners are watching their neighbors make bank and are feeling left out. “As Rick Palacios, director of research at John Burns Real Estate Consulting tweeted last month, there’s “a lot of aspirational ‘make me move’ pricing happening.”
- It doesn’t always work. Kevin Sneddon a broker in Connecticut had clients who insisted they list 15% over his recommendation. So he did and the house sat there for 30 days. “On day 30, I reduced the price to my recommended price, and within less than 30 days, we had an accepted offer.”
- This strategy can backfire. Some believe this is a good way to negotiate to a higher overall accepted price. However, Noah Rosenblatt, co-founder of real estate analytics company UrbanDigs, argues this can backfire. “Unfortunately, this tactic leads to longer days on-market and steeper discounts compared to pricing at-market.”
With the recent NAR report showing that the median home price crossed $350,000 for the first time and this is up a whopping 23.6% from a year ago, its easy to see why people are getting carried away. Unless you truly don’t care if you sell or not, the best advice seems to be listen to your real estate broker. They know the market and they know what the ceiling is on prices.